S&P Materials’ 98% Rally Has Room to Run as Recovery Quickens
- Industrial economy remains on upward path, Jefferies says
- Weaker dollar and value rotation may further fuel rally
Shares in companies such as copper miner Freeport-McMoRan Inc. have soared on price increases.
Photographer: Dadang Tri/Bloomberg
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A rally that has pushed the S&P 500 Materials Index to an all-time high has more room to run, thanks to a combination of economic forces including higher prices for raw materials.
Shares in companies such as copper miner Freeport-McMoRan Inc. and lithium producer Albemarle Corp. have soared on commodity price increases, helping to push the index up 98% higher since its crash a year ago. The gains have made the sector the best performing after energy on the S&P 500 in a trend analysts say could continue.